IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
U. DURGA PRASAD RAO, J.
S. Koteswara Reddy, S/o. S. Nageswara Reddy - Appellant
Versus
State of Andhra Pradesh, Rep. by its Principal Secretary, Department of Mines & Geology and Ors. - Respondents
W.P. No. 4214 of 2021
Decided On : 29-09-2021
Constitution of India, 1950 - Articles 14, 19 - A.P. Minor Mineral Concessions Rules, 1966 - Mines and Minerals (Development and Regulation) Act, 1957 - Section 9-A, 9 - Rajasthan Minor Mineral Concession Rules, 1977 - Rule 3 - Whether mine is worked or not –Held, Court observed that even after execution of lease granted, petitioner could not operate and did not excavate and utilize leased property, and lease was terminated and lessee asked to pay dead rent with interest thereon as penalty by State Government- Court ruled that under circumstances, Mining Department was not entitled to recover any money for leased area up to me period lease was cancelled - Thus, Honourable Courts have held that if petitioner could not operate area held under mining lease because lessee did not have physical possession over lease area, despite lease being executed, and in case where lessee has ceased to have legal rights which may be restored subsequently by competent authority, dead rent shall not be payable for such periods when lessee has no possession (physical or legal as the case may be) over leased areas –Ordered Accordingly.
ORDER :
U. Durga Prasad Rao, J.
1. The petitioner prays for a writ of mandamus declaring the order dated 09.11.2020 passed by the 1st respondent vide Memo No. 6857/M.1(2)/2018-2 to the extent of directing the petitioner to pay all mineral revenue arrears and determining the lease passed by 2nd respondent vide D.Dis. Proc. No. 1758/R1-1/2018 as illegal, arbitrary and violative of Articles 14 & 19 of the Constitution of India read with the A.P. Minor Mineral Concessions Rules, 1966 (for short, 'the APMMC Rules, 1966') and consequentially set aside the same.
2. Petitioner's case pithily is thus:
Petitioner holds quarry lease for Colour granite in an extent of 7 Hectares in Sy. No. 73 of Melisathiwada Village, Tekkali Mandal, Srikakulam District for a period of 20 years. The Director of Mines and Geology/2nd respondent vide D.Dis.Proc. No.1758/R1-1/2018, dated 08.06.2018, determined the quarry lease of the petitioner on the ground that the Assistant Director of Mines and Geology, Srikakulam/3rd respondent submitted proposal for determination after inspection of the quarry lease and after noting certain lapses on the part of the lessee as follows :
(b) The lessee failed to maintain boundary pillars in violation of Rules 28(2) and 31(vi) of APMMC Rules, 1966.
(c) The lessee has not obtained the dispatch permits since 11.03.2013 in contravention of APMMC Rules, 1966.
The Director in his order mentioned that a show-cause notice was issued to the petitioner calling for the explanation and the explanation submitted was found to be not productive and not supported by any documents showing the reasons for non-operation of the quarry for more than two years since 11.03.2013 and the reply was only a routine one and thus not tenable. For all the aforesaid grounds the 2nd respondent determined the lease vide D.Dis. Proceedings No. 1758/R1-1/2018 dated 08.06.2018.
The petitioner preferred revision before 1st respondent and the said authority after calling for remarks from 2nd and 3rd respondents and after affording personal hearing to the petitioner, passed the impugned order vide Memo No. 6857/M.1(2)/2018-2 dated 09.11.2020 as follows :
7. Accordingly the Revision application is disposed off under Rule 35-A Andhra Pradesh Minor Mineral Concession Rules, 1966 and the Director of Mines and Geology, Government of Andhra Pradesh, Ibrahimparnam shall take further necessary action in the matter."
Though satisfied with the impugned order allowing the revision application and setting aside the lease determination order passed by the 2nd respondent, the petitioner, however aggrieved by the condition in the order directing the petitioner to pay all Mineral revenue arrears, filed the instant writ petition.
3. The respondents filed counter opposing the writ petition contending thus:
The petitioner is a transferee lessee from M/s. Sri Sai Granites for the unexpired period of lease till 15.10.2029. The 3rd respondent submitted proposals to 2nd respondent vide Lr. No. 3112/Q/2007 dated 06.03.2018 basing on the inspection conducted by Maha Check Vigilance Teams which have noticed certain violations of the APMMC Rules, 1966 committed by the petitioner such as non-operation of the lease since 11.03.2013, non-erection of boundary pillars and failing to take dispatch permits since 11.03.2013. On a show-cause notice issued by 2nd respondent, the petitioners vide letter dated 08.05.2018 submitted reply with untenable reasons. He submitted that there is an approach road between the main road and quarry site and in that respect there was some issue
Enterprising Enterprises Private Limited v. Government of A.P.
The lessee in possession of leased land is liable to pay dead rent under Section 9A of the Mines and Minerals Act, regardless of quarrying activities.
The stamp duty or the dead rent is to be charged on the basis of the amount of royalty to be paid, and the proviso to section 26 of the Act of 1899 applicable to the mining lease is required to be re....
The Mines Tribunal has the authority to determine lease terms for mining operations under statutory provisions, affirming that statutory leases are bound by the same conditions as contractual ones, i....
The liability of the petitioner to pay dead rent even if the petitioner was unable to extract mineral, on account of non-availability of clearances, would not cease.
The court affirmed that for mining leases, stamp duty calculations must account for anticipated royalty alongside dead rent per statutory provisions and established practices.
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